What is the effective annual rate or EAR of 8% compounded monthly?   a. 6.14%   b. 8.38%   c. 8.30%   d. 6.47%

Q: Compute the effective annual rates for the following:a. 2 percent compounded yearly.b. 2 percent…

A: Effective annual interest rate ( EAIR ) = [{1 + ( r ÷ n )} ^ n] - 1, r= interest rate n= period  a.…

Q: .If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if…

A: Given, The amount deposited is $1000 The annual rate is 12.5%

Q: What is the effective annual rate for an APR of 10.30 percent compounded quarterly?

A: Effective Annual Rate: It represents the real annual rate considering the compounding effects are…

Q: What is the effective annual rate of 8.25 percent compounded quarterly? a. 8.38 percent b. 8.49…

A: The effective annual rate is calculated to take effect of compounding in a simple rate of return. It…

Q: 1. Find the effective rate (APR) for a nominal rate at (a) 7% p.a. compounded annually. (b) 8% p.a.…

A: Because you have asked a question with multiple parts , we will solve the first 3 parts for you as…

Q: What rate of interest compounded annually is the same as the rate of interest of 8% compounded…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: What is the annual compounding rate per semester equivalent to 12.96% annually compounded monthly?

A: Given Information Annual rate =12.96% To find -Annual Compounding rate per semester equivalent to…

Q: Nominal rate is 5.28% with quarterly compounding. The effective annual rate (EAR) is closest to…

A: To calculate the effective annual rate we will use the below formula   Effective annual rate =…

Q: What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded…

A: Effective annual return is the rate of return on the investment after taking the effects of…

Q: Find the equivalent of 6% compounded semi-annually in a rate compounded quarterly 6.21% 5.56% 5.96%…

A: We need to calculate effective rate by using this equation Effective rate =(1+r/n)n -1 where…

Q: e? 6 % p.a compounded monthly

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: What is the effective annual rate (EAR) for a nominal rate (monthly compounding) of 9.00%? 9.4130%…

A: Nominal rate = 9% Compounding = monthly

Q: What is the equivalent rate of 10% compounded semi-annually to compounded weekly? O 9.7672% O…

A: Effective rate of interest is the rate of interest compounded as per the tenure.

Q: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.66 %…

A: Nominal Interest Rate (r) is 8% Compounding Period is (m) is Monthly i.e. 12

Q: Find the effective rate of annual interest 9% that paid quaterly. a. 9.5% b. 9.3% c. 9.10% d. 9.0%

A: Given Details: Normal Interest Rate= 9% Compounding = Quarterly

Q: What is the effective annual rate for an APR of 15.10 percent compounded monthly? O 15.98% 15.18% O…

A: The effective annual rate (EAR) is the true annual interest rate that takes into account the…

Q: Find the effective annual interest rate of 4% compounded quarterly. a. 4.31% b. 4.25% C. 4.75% d.…

A: In the given question we require to compute the effective annual interest rate of 4% compounded…

Q: Calculate the effective interest rate per month for an interest rate of 14% in continuously…

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: Q2: a) What rate, compounded semi-annually, is equivalent to 10% compounded quarterly? m NOM EFF m…

A: Compound = n = Semiannually = 2Interest Rate = r = 10%

Q: An interest rate of 10% compounded monthly is given, compute for the interest rate per perio 0.83% O…

A: Interest Rate per period = Annual interest rate / no. of compounding period

Q: What is the effective annual interest rate if the nominal annual interest rate is 24% per year…

A: EAR is the effective annual rate of interest paid/received on a sum of money after taking…

Q: he x% compounded semi-annually on a nominal rate of 9% compounded conti

A: The more is compounding more is effective interest rate and less is compounding less is effective…

Q: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.29% O…

A: given, r=8% m = 12 ( monthly compounding)

Q: Find the x% compounded semiannually on a nominal rate of 9% compounded continuously.

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: Which one of the following has the highest effective annual rate? A. 6 percent compounded monthly.…

A: effective annual rate =  - 1wherer = given interest raten = frequency of compounding

Q: ctive rate? 6 % p.a compounded quarterly

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: A. Calculate the effective annual rate (EAR) in each of the following scenarios: b. APR = 10%,…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…

Q: What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR…

A: Effective Annual Rates (EAR) = ( 1+ APR/m)m - 1 APR = Annual Percentage Rate n = number of…

Q: What is the effective annual rate of 6%, compounded monthly? O 6.12% O 6.06% O 6.14% O 6.17% O 6.24%

A: Effective Annual rate The effective annual interest rate is that real return that is paid on the…

Q: What is the equivalent rate of 6% compounded quarterly to compounded monthly? 5.9702% 5.6702%…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.